Manchester City will make their move for Portuguese international defender Pepe once the January transfer window opens, according to reports in Spain.
There have been voices linking the Premier League champions with the volatile centre-back in recent weeks and they are gathering volume.
The 31-year-old is under contract at Real until 2016 and has been with the Spanish giants since 2007, making 173 appearances for the club.
City have been linked with Pepe in the past, but have never made a definitive approach. If they do sign him, it could have implications for Matija Nastasic, who is wanted by Roma and Juventus.
Pepe has been phenomenally successful at the heart of the Real defence alongside Sergio Ramos, but there's a feeling that the club need to move on.
Manchester City boss Manuel Pellegrini coached Pepe at Real Madrid for the 2009-10 season and will be aware of the challenges of working with such a fiery individual.